REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the...
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Accounting
REQUIRED Use the information provided below to answer the following questions independently:
3.1 Calculate the margin of safety (expressed in units). (4 marks)
3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. (4 marks)
3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. (4 marks)
3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. (4 marks)
3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. (4 marks)
INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows:
R
Direct manufacturing costs per unit
R200
Variable manufacturing overheads cost per unit
R50
Variable administration costs per unit
R40
Sales commission
10% of Sales
Fixed manufacturing costs
R1 800 000
Fixed administration and selling costs
R600 000
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